Are there any specific fees mentioned in the Alloy FDD that are applicable only to the 'STATE OF GLOVAIA'?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned hereby acknowledges having read and understood this Addendum and consents to be bound by all of its terms.
FRANCHISOR: Alloy Personal Training, LLC FRANCHISEE:
SOUTH DAKOTA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following applies to franchises and franchisees subject to South Dakota statutes and regulations:
Item 5: Due to the financial condition of the Franchisor, the South Dakota Securities Regulation Office has required a financial assurance. Therefore, all initial fees and payments owed by franchisees to the franchisor under a franchise agreement shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first Facility developed under the development agreement opens.
ADDENDUM TO THE FRANCHISE AGREEMENT REQUIRED FOR SOUTH DAKOTA FRANCHISEES
This Addendum pertains to franchises sold in the State of South Dakota and is for the purpose of complying with South Dakota statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as follows:
- The following sentence is hereby added to the end of Section 9.A, Initial Franchise Fee:
Due to the financial condition of the Franchisor, the South Dakota Securities Regulation Office has required a financial assurance. Therefore, all initial fees and payments owed by franchisees to the franchisor under a franchise agreement shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.
- Except as amended herein, the Franchise Agreement will be construed and enforced in accordance with its terms.
Each of the undersigned hereby acknowledges having read and understood this Addendum and consents to be bound by all of its terms.
FRANCHISOR: Alloy Personal Training, LLC FRANCHISEE:
ADDENDUM TO THE AREA DEVELOPMENT AGREEMENT REQUIRED FOR THE STATE OF SOUTH DAKOTA
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 Alloy FDD excerpts, there are no specific fees outlined that apply exclusively to the 'STATE OF GLOVAIA'. However, the document includes addenda that address specific state requirements for California and South Dakota. For example, in South Dakota, due to Alloy's financial condition, the South Dakota Securities Regulation Office mandates a financial assurance, which defers initial fees and payments from franchisees until Alloy completes its pre-opening obligations.
Additionally, the FDD mentions a transfer fee of $10,000, which is nonrefundable, and conditions for transferring the franchise, such as meeting Alloy's current requirements and paying all outstanding amounts owed. There are also fees associated with the Alloy App, a proprietary software application system that franchisees must purchase and maintain, including potential software licensing or user fees.
Since there is no mention of 'GLOVAIA', a prospective franchisee should confirm with Alloy whether any state-specific fees or regulations apply to their particular state. This information would likely be included in a state-specific addendum or discussed during the franchise sales process. It is crucial to clarify all financial obligations and legal requirements before entering into a franchise agreement.